Retention of BPO Employees in India

Abstract

Changes in business conditions, demographics and globalization have created new opportunities for the HR function. These changes have raised the need to understand and manage the dynamics of talent, from sourcing to resource management to recognition systems. To prosper in this new environment, HR profes­sionals need to take a more strategic perspective on their services and capabilities. Simply being effective in dealing with administrative issues is no longer the yardstick by which the value of the HR function will be evaluated. Rather, value will lie in using a fact-based, analytic approach to solve problem of retention of employees of BPO in India. This is responsibility of management to provide a longer, more futuristic viewpoint regarding how the business needs to adjust to environmental changes.

Employee retention matters, as, organizational issues such as training time and investment, costly candidate search etc., are involved. Hence, failing to retain a key employee is a costly proposition for any organization. Various estimates suggest that losing a middle manager in most organizations, translates to a loss of up to five times his salary. This might be worse for BPO companies where fresh talent is intensively trained and inducted and then further groomed to the successive stages.

The HR strategy should evolve from a transactional support role to partnering in the organizations business strategy. HR must take steps to be aware of employee problems and try to solve them, creatively for BPOs in India.

Keywords: BPO: Business Process Outsourcing, HR: Human Resource, Employee Retention